Challenges of applying SAP AI to business priorities

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Summary

Applying SAP AI to business priorities means using artificial intelligence within SAP systems to automate and improve business processes, but organizations face major hurdles like poor data quality, integration issues, and uncertainty about return on investment. These challenges often prevent companies from seeing the full benefits of AI, making it essential to address foundational problems before starting any AI projects.

  • Strengthen data quality: Clean up and organize your SAP data before introducing AI to avoid wasted resources and abandoned projects.
  • Modernize system integration: Plan for connecting AI tools with both old and new business systems by updating infrastructure or using APIs as needed.
  • Align with clear goals: Set specific business objectives for your AI initiatives and track progress to ensure that your efforts translate into measurable results.
Summarized by AI based on LinkedIn member posts
  • View profile for Vaibhav Goyal
    Vaibhav Goyal Vaibhav Goyal is an Influencer

    Agentic AI | Collections | LinkedIn AI top voice | Educator

    11,762 followers

    𝘉𝘶𝘪𝘭𝘥𝘪𝘯𝘨 𝘈𝘐 𝘢𝘨𝘦𝘯𝘵𝘴 𝘧𝘰𝘳 𝘦𝘯𝘵𝘦𝘳𝘱𝘳𝘪𝘴𝘦 𝘣𝘶𝘴𝘪𝘯𝘦𝘴𝘴 𝘢𝘶𝘵𝘰𝘮𝘢𝘵𝘪𝘰𝘯 𝘱𝘳𝘦𝘴𝘦𝘯𝘵𝘴 𝘴𝘦𝘷𝘦𝘳𝘢𝘭 𝘬𝘦𝘺 𝘤𝘩𝘢𝘭𝘭𝘦𝘯𝘨𝘦𝘴 𝘴𝘶𝘤𝘩 𝘢𝘴  1️⃣ Data quality and availability: AI agents require large amounts of high-quality, structured data to train and operate effectively. To automate customer service responses needs access to a comprehensive database of past customer interactions, including queries, responses, and outcomes. If this data is incomplete, inaccurate, or poorly structured, the AI's performance will suffer. 2️⃣ Integration with legacy systems: Many enterprises rely on older, complex systems that may not have modern APIs or easy data access points. An AI agent tasked with automating financial reconciliation might need to interact with an outdated ERP system, a modern cloud-based accounting software, and several custom-built internal tools. Ensuring seamless integration and data flow between these disparate systems can be challenging. 3️⃣ Handling exceptions and edge cases: While AI can be trained on common scenarios, business processes often involve numerous exceptions and special cases. Automating invoice processing might encounter invoices with non-standard formats, missing information, or requiring special approvals. The AI needs to be sophisticated enough to recognize these exceptions and either handle them appropriately or escalate to human intervention. 4️⃣ Explainability and transparency: For many business processes, especially those involving financial or legal decisions, it's crucial to understand how and why decisions are made. If an AI agent is approving or denying loan applications, the enterprise needs to be able to explain the reasoning behind each decision, both for regulatory compliance and customer satisfaction. 5️⃣ Continuous learning and adaptation: Business processes and rules change over time, and AI agents need to adapt accordingly. Supply chain optimization needs to continuously learn and adapt to changes in supplier relationships, global events affecting logistics, and shifting consumer demands. 6️⃣ Security and compliance: AI agents often handle sensitive business data and need to operate within strict regulatory frameworks. Automating healthcare billing needs to ensure full HIPAA compliance, protecting patient data while interacting with various healthcare providers and insurance systems. 7️⃣ Human-AI collaboration: Designing systems where humans and AI agents can effectively work together, especially for complex tasks, is challenging. In a customer service scenario, an AI agent might handle initial customer queries but need to smoothly hand off to a human agent for more complex issues, ensuring all context is properly transferred.

  • View profile for Johnathon Daigle

    AI Product Manager

    4,331 followers

    The best businesses don't just adopt AI. The best businesses overcome AI challenges. We've worked with hundreds of companies on AI projects. The common challenges they face, With practical solutions for each: 1) Skill Gap: • Invest in training programs for your team. Partner with AI consultants to bridge the gap. Consider fractional CIO services for expert guidance. 2) Data Quality Issues: • Implement robust data governance strategies. Ensure data integration to eliminate silos and inconsistencies. 3) Integration with Legacy Systems: • Adopt an API-first approach for seamless compatibility. Consider phased modernization to gradually update infrastructure. 4) Resistance to Change: • Foster a culture of innovation within the company. Provide clear communication about AI's role and benefits. 5) ROI Uncertainty: • Start with well-defined, measurable pilot projects. Track and quantify the benefits to build a strong business case.

  • View profile for Alok Kumar

    👉 Upskill your employees in SAP, Workday, Cloud, AI, DevOps, Cloud | Edtech Expert | Top 10 SAP influencer | CEO & Founder

    84,252 followers

    🚨 SAP Customers: Fix Your Data Before You Jump on AI 🚨 Here’s a reality check: 42% of AI projects are being abandoned in 2025 This is up from 17% just last year. Nearly half of AI proof-of-concepts never make it to production. Why? Poor data quality is the silent killer behind most failures. Without clean, reliable SAP data, AI initiatives will struggle to deliver value - and that means wasted time, money, and effort. ✅ Key stats to consider: - 46% of AI proof-of-concepts get scrapped before production   - 70-85% of generative AI deployments fail to meet ROI expectations.   - 96% of SAP customers have executive mandates to explore or implement AI, yet many struggle with data readiness.   - Organizations with mature SAP-specific AI capabilities report 20% profit margins, compared to 16% for peers.   - Companies investing in data quality first see AI ROI nearly double - from 6.8% in 2024 to projected 12.2% in 2025.  SAP environments are complex, with massive volumes of master and transactional data. Data inconsistencies, duplicates, and gaps are common and must be fixed before AI can work effectively. ✅ For example, 1. KAESER spent three years on a data strategy before applying AI, automating 80% of supplier data maintenance and dramatically improving accuracy and efficiency. 2. ZF Friedrichshafen used a “data-first” mindset and crushed it - accelerating planning cycles by 16x and automating 80% of data tasks ✅ What successful SAP AI adopters do differently: - Prioritize data cleansing, validation, and governance before AI deployment.   - Use AI-driven tools to automate data quality tasks like deduplication and enrichment.   - Align AI projects with clear business objectives to avoid costly failures.   - Integrate AI into cloud-based SAP platforms for scalability and real-time insights.   - Embrace a culture of experimentation but learn fast from failures to refine AI use cases.  SAP is embedding AI across its cloud solutions to help customers transition smoothly and unlock value. But the foundation remains data quality → AI is only as smart as the data it learns from. ✅ Your Takeaway: 1. Don’t rush AI without fixing your SAP data first. 2. Build a strong data foundation now to avoid joining the 42% who abandon AI projects. ✅ The payoff? Higher ROI, faster innovation, and a future-ready enterprise. How are you preparing your SAP data for AI? Let’s discuss! 👇 #SAP #AI #DataQuality #DigitalTransformation #GenerativeAI #ZaranTech #BusinessGrowth #FutureReady

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